Tempur Sealy International will sell 73 Mattress Firm stores and its 103-store Sleep Outfitters subsidiary to Mattress Warehouse following the completion of Tempur Sealy’s proposed $4 billion acquisition of Mattress Firm, which is being challenged by the Federal Trade Commission (FTC). The planned divestiture is a pre-emptive move to make the deal more palatable to the FTC.
Tempur Sealy announced the acquisition in May 2023. In March 2024, Tempur Sealy and Purple established new partnership parameters and resolved their intellectual property disputes in light of the planned acquisition. However, in July 2024 the FTC voted to block the acquisition, citing the potential for higher prices and less competition.
Hearings in the case are scheduled to begin before an FTC administrative law judge on Nov. 12, 2024, and Tempur Sealy expects them to last two weeks. The retailer is still expressing confidence that the entire litigation process can be completed in the coming months, which would allow the transaction to close in late 2024 or early 2025.
“As part of our engagement with the FTC on the proposed acquisition of Mattress Firm, we conducted a divestiture process, which led to an agreement with Mattress Warehouse, a company with extensive mattress retail experience, a strong capital base and a capable leadership team,” said Scott Thompson, Chairman and CEO of Tempur Sealy International in a statement.
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Following the divestiture, Tempur Sealy will continue to sell its Tempur-Pedic, Stearns & Foster and Sealy products to the divested Mattress Firm and Sleep Outfitters stores.
